After dropping nearly 14% in May, new home sales eked out an increase in June, rising 0.6% month-over-month to a seasonally-adjusted annual rate of 627,000, according to estimates from the U.S. Census Bureau and the U.S. Department of Housing and Urban Development.
Year-over-year, this is down 6.6% compared with June 2024.
Inventory continued to rise in June, which helped spur more sales. As of the end of the month, there were about 511,000 new home available for sale in the U.S., an increase of 1.2% compared with May and up 8.5% compared with June 2024.
That’s about a 9.8-month supply at the current sales rate.
The months’ supply is 1.0% above the May 2025 estimate of 9.7 months, and is 16.7% above the June 2024 estimate of 8.4 months.
The median sales price of a new home sold in June was $401,800, a decrease of 4.9% compared with May and down 2.9% compared with June 2024.
The average sales price of a new home sold in June was $501,000, down 2.0% compared with May but up 1.1% compared with June 2024.
“New home sales remained flat last month, highlighting persistent weakness in the housing market despite seasonal expectations for growth,” says Buddy Hughes, chairman of the National Association of Home Builders (NAHB), in a statement. “Elevated mortgage rates and sustained price levels continue to limit purchasing power, particularly among first-time and middle-income buyers.”
“Despite targeted incentives and pricing adjustments by builders, demand remains tepid, suggesting these measures have had limited impact on overall sales volume,” adds Danushka Nanayakkara-Skillington, assistant vice president for forecasting and analysis for NAHB. “And while inventory conditions have stabilized, the flat performance signals continued buyer hesitation and a cautious outlook for the sector. Unless there is a material improvement in financing conditions or household income growth, a near-term acceleration in new home sales appears unlikely.”
Photo: Todd Kent